Firms must justify pay, Cable tells Lib Dems
Business Secretary Vince Cable says companies should have publicly to justify bonuses and executives’ salaries.
To bolster efforts to “call time on payouts for failure”, Mr Cable says that from October firms must disclose the criteria used to determine their huge reward packages.
The business secretary says the Liberal Democrat conference new rules will require the total value of salary, shares, pensions and bonuses to be set out clearly every year to promote transparency.
The business secretary believes a four-fold increase in FTSE-100 chief executive pay since 1998 proves the system of remuneration has become “dysfunctional”.
“People accept capitalism but they want responsible capitalism. I want to call time on payouts for failure,” he will tell the Birmingham conference.
Mr Cable‘s speech suggests it may not be as incendiary as his assault at last year’s gathering on City “spivs and gamblers” and “outrageous” bank bonuses.
But he hs issued a clear message to the party’s Conservative coalition partners over issues such as the 50p tax rate, warning that voters need to see evidence of fairness in cuts.
“The public will only accept continuing austerity if it is seen to be fair. There is a great sense of grievance that workers and pensioners are paying the penalty for a crisis they did not create.
“I want a real sense of solidarity which means a narrowing of inequalities. The wealthy must pay their share.”
